TWSE index rises to 18-month high

Taiwan's TWSE Index rose to an 18-month high, led by United Microelectronics Corp (UMC, 聯電), after Intel Corp's first sales increase in five quarters raised optimism of more demand for chips used in computers and servers.

The TWSE Index rose 132.95, or 2.1 percent, to 6390.68, its highest since Sept. 29, 2000. Within the index, 295 stocks rose and 203 fell. The total value of trade was NT$168 billion ($4.8 billion), more than two-fifths above the six-month daily average of NT$118 billion.

UMC, whose shares topped the list of net purchases by foreign investors yesterday, gained 4.6 percent to NT$57. It's rallied more than a fifth since March.

"If UMC can continue its uptrend, it'll push the market to 6,500," said Bill Lin, who manages US$15 million in stocks at United Securities Investment Trust Corp (聯合投信). "Rising consumer electronics and telecommunications orders will drive up the stock."

Asustek Computer Inc (華碩電腦) rose NT$5, or 3.5 percent, to NT$147. SG Securities upgraded Taiwan's largest computer-motherboard maker to "buy" from "hold," citing rising shipments to customers such as Dell Computer Corp amid falling prices.

China Airlines Co (華航) rose NT$0.40, or 2.7 percent, to NT$15.30. Taiwan's largest airline said in a statement it will post a pretax profit of NT$800 million in the quarter ended March 31, up more than a tenth from the year-earlier period.

Elitegroup Computer Systems Co (精英電腦) rose NT$3, or 1.6 percent, to NT$196. Taiwan's third-largest computer- motherboard maker forecasts sales this year will more than double to more than NT$62 billion from last year as notebook computer sales rise and motherboard sales fall to less than half of total revenue, the Economic Daily News reported, citing Chairman Johnson Chiang (蔣國明).

Hua Nan Financial Holding Co (華南金控) rose NT$1.40, or 6.7 percent, to NT$22.30 after the Commercial Times reported the owner of Taiwan's fifth-largest bank plans to sell more than NT$50 billion of bad loans this year.

Powerchip Semiconductor Corp (力晶半導體) rose NT$0.20, or 0.8 percent, to NT$26.